U.S. semiconductor maker Texas Instruments has agreed to buy Silicon Laboratories in a transaction valuing the chip designer at $7.5 billion, expanding its presence in wireless connectivity chips used across industrial and consumer applications. The acquisition marks Texas Instruments’ largest deal in more than a decade and strengthens its portfolio beyond core analog components.
Under the agreement, Texas Instruments will pay $231 per share for Silicon Labs, representing a premium of about 69% to the stock’s last unaffected closing price. Silicon Labs shares surged in premarket trading following the announcement, while Texas Instruments shares fell as investors assessed the scale of the acquisition. The deal is expected to close in the first half of 2027, pending regulatory approvals.
Texas Instruments focuses on foundational chips that manage power and signals in everyday electronics, serving customers across smartphones, automobiles, and medical devices. By acquiring Silicon Labs, the company adds expertise in chips that enable wireless connectivity for smart homes, industrial equipment, and other connected devices. Silicon Labs previously streamlined its operations by selling non-core automotive assets, sharpening its focus on connected technologies.
The transaction will be financed through a mix of cash and debt, and Texas Instruments expects the deal to generate roughly $450 million in annual manufacturing and operational savings within three years of closing. Analysts see the move as a strategic bet on long-term growth in connected and industrial markets rather than high-end AI processors.
